Concerns that young people are running up debts which may dog them into their late 30s or early 40s have prompted the UK's leading debt charity, the Consumer Credit Counselling Service (CCCS), to look into the whole issue of over-indebtedness and the young.

According to the CCCS, not only are more people under 30 seeking help from the CCCS, but the total amount of money owed by young people is rising steeply. The average debt owed by people under 30 has risen by 28 per cent from £12,452 in 2000 to £15,891 for the first quarter of this year - co-inciding with a time when inflation is at an all-time low.

Commenting on the figures, CCCS chairman, Malcolm Hurlston said: "We have clients in their 20s who are on debt management plans which will last until they are in their late 30s. This is not a good way to start off if you want to get married, buy a property, start a family - all the normal processes most of us expect to happen.

"We need to know what is driving young people to rack up debts of over £20,000 and £30,000 in their 20s. It may be the effect of student loans or the introduction of student fees; it may stem from a lack of understanding about how to budget effectively and to determine priorities - whatever the cause, we need to understand more in order to help the young manage credit more effectively. As we are encouraging young people to fund their education through borrowing, it is important to make sure that their lives are not damaged as a result."

"At the moment we enjoy low unemployment. Most graduates, for example, can find jobs and only six per cent are unemployed six months after leaving university. Unfortunately, many have large debts and relatively poor money management skills. With high living costs and few savings, young people find their financial situation can easily become unmanageable. We think the numbers seeking help from CCCS could just be the tip of the iceberg with many struggling alone or borrowing more to pay off existing debts."

Over the next two to three months, the CCCS will be researching its database and carrying out evaluation research to ascertain why the young's financial commitments appear to be sky-rocketing and what can be done to prevent this from getting out of control.

In the meantime, CCCS is writing to the CBI and to the Chartered Institute of Personnel & Development to alert employers. The CCCS runs a helpline on 0800 138 1111. It is a charity dedicated to providing free and confidential counselling and assistance with money management to families and individuals in financial distress. Last year the CCCS was managing debt repayment plans for over 3,500 clients aged under 30.